FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The time from acceptance to maturity on a $1,000,000 bankers acceptance is 90 days. The importers banks acceptance commission is 2.25% and the market rate

The time from acceptance to maturity on a $1,000,000 bankers acceptance is 90 days. The importers banks acceptance commission is 2.25% and the market rate for 90day B/As is 6.00%. What amount will the exporter receive if he discounts the B/A with the importers bank? (3 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Frontier Markets Evidence From Middle East North Africa And International Comparative Studies

Handbook Of Frontier Markets Evidence From Middle East North Africa And International Comparative Studies

Authors: Panagiotis Andrikopoulos , Greg N. Gregoriou , Vasileios Kallinterakis

1st Edition

0128092009,0128094915

More Books

Students also viewed these Finance questions

Question

★★★★★
An infinitesimal Lorentz transformation and its inverse can be written as where ? ?? and ? ?? are infinitesimal. (a) Show from the definition of the inverse that ? ?? = ? ? ?? . (b) Show from the...

Answered: 1 week ago

Question

★★★★★
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The...

Answered: 1 week ago

Question

★★★★★
2. Winlett Enterprise, a small business maintains a capital structure of 2:3. The firm is considering expanding its area of operation with an initial cost estimation of US$100,000. The interest rate...

Answered: 1 week ago

Question

★★★★★
Assume the nation of Australia is "small" and thus unable to influence world price. Its demand and supply schedules for TV sets are shown in Table. Using graph paper, plot the demand and supply...

Answered: 1 week ago

Question

★★★★★
Stocks A, B, and C all have an expected return of 10% and a standard deviation of 25%. Stocks A and B have returns that are independent of one another, i.e., their correlation coefficient, r, equals...

Answered: 1 week ago

Question

★★★★★
Would appreciate some step-by-step help with this homework problem, please. Thank you. Consider the following three stocks: Stock A is expected to provide a dividend of $11.10 a share forever. Stock...

Answered: 1 week ago

Question

★★★★★
Number Frequency 1 2 3 4 5 16 20 20 25 14 29 29 A die is thrown 132 times with the following results: 6 28 180

Answered: 1 week ago

Question

★★★★★
1/What rate of return should be required on the Bharti Airtel share, which has a of 0.7, if the Rio Tinto share, which has a 3 of 1.1, returns 10% and is correctly valued, and the rate of a risk-free...

Answered: 1 week ago

Question

★★★★★
Q1. (20 points) The Brampton Burger Restaurant requires the following number of employees to work at the French fires workstation on a given Saturday. Time period French fries employees needed 11 -...

Answered: 1 week ago

Question

★★★★★
Which equation would you use to determine the displacement of an object that is undergoing uniform acceleration, when given the initial velocity, final velocity, and the time interval? Question 3...

Answered: 1 week ago

Question

★★★★★
Consider a commercial jetliner that weighs about 200 000 kgs. It is found that 80% of the structure is made of 2024T3 aluminum, and 15% is made of carbon/epoxy composites. The remaining 5% part of...

Answered: 1 week ago

Previous Question Next Question